Last night, Wilson’s City Council voted to halt Greenlight Internet service to the community of Pinetops, North Carolina. City leaders, faced with the unfortunate reversal of the FCC’s preemption of harmful state anti-muni laws, felt the move was necessary to protect the utility. Service will stop at the end of October.

No Other Solution

Before the vote City Manager Grant Goings told the Wilson Times:

“Unfortunately, there is a very real possibility that we will have to disconnect any customer outside our county. That is the cold, hard truth,” Goings said. “Without getting into the legal options that our city attorney will discuss with the council, I’ll summarize it like this: we have not identified a solution where Greenlight can serve customers outside of our county.

“While we are very passionate about reaching underserved areas and we think the laws are atrocious to prevent people from having service, we’re not going to jeopardize our ability to serve Wilson residents.”

When H129 passed in 2011, it provided an exemption for Wilson, which allows Greenlight to serve Wilson County. The bill also states that if they go beyond their borders, they lose the exemption. North Carolina’s priorities are clearly not with the rural communities, but with the big corporate providers that pushed to pass the bill.

After Wilson leaders took the vote, Christopher commented on the fact that they have been put in such a difficult position:

"It is a travesty that North Carolina is prioritizing the profits of the big cable and telephone companies above the well-being of local businesses and residents. The state legislature needs to focus on what is good for North Carolina businesses and residents, not only what these powerful lobbyists want."

Economic Progress Grinds To A Halt

The City of Madison, Wisconsin is one step closer to constructing a citywide municipal fiber network after obtaining the results from a broadband feasibility study. The consulting firm hired in December 2015 recently completed the study and made it available to the city’s Digital Technology Committee and the public.

The report recommends Madison build an open access dark fiber network and engage a partner to offer services to subscribers via the infrastructure. Westminster, Maryland, and Huntsville, Alabama, use the same approach with partners Ting and Google Fiber. Madison’s network would build on the existing Metropolitan Unified Fiber Network (MUFN), a smaller fiber network that was funded with stimulus dollars through the 2009 American Recovery and Reinvestment Act (ARRA). It connects public institutions such as the University of Wisconsin, Dane County, hospitals, K-12 schools, and DaneNet, which is made up of 28 community groups serving low income families and seniors. 

Consultants suggest Madison retain ownership of the infrastructure in order to maintain control of the asset and the city's future connectivity. The City would fund the $150 million cost of building a dark fiber network and their private partner would contribute an estimated $62 million to connect properties. Consultants envision the partner responsible for cable to residences and businesses, network electronics, and consumer electronics, bringing the total cost for the project to approximately $212 million.

"Now here’s the key: that’s a lot of money. The report talks about how to get it and we can bond and do a lot of other things, but it basically says to make this happen, you need a private partner," said Barry Orton, a member of the Digital Technology Committee. Orton went on to say that a more specific cost estimate, including identification of partners, would be forthcoming, as soon as Spring 2017.

An Ongoing Project

With charming cornfields and bustling cities, Iowa is a Midwest hub of community networks. Harlan, the county seat of Shelby County, is located in west central Iowa. About 5,400 people live in the town, situated along the West Nishnabotna River. Back in the ‘90s, Harlan was one of several Iowa towns that built their own cable networks to deliver video and Internet services. In August, Harlan Municipal Utilities (HMU) announced it will continue upgrading to fiber, a project they started in 2012. Upon completion in early 2017, much of the town will have Internet access via fiber.

The Present: 2016-2017 Fiber Project

HMU announced the project on their website in early August. For more details, we spoke with Director of Marketing, Doug Hammer, previously a guest on our Community Broadband Bits podcast. 

During the fiber expansion, HMU will build out to the southern half of town, which is bounded by Highway 44 to the north, Highway 59 to the west, and the river to the east. The utility also intends to build out slightly north, into the center of town. The project will take approximately six months to complete. 

First, HMU will install conduit, the reinforced tubes which hold the fiber, to all their electric, gas, and water customers along major roads. Then, in the first quarter of 2017, they will bring fiber to homes and businesses. [Update: Those homes and businesses already receiving telecom services. Fiber to non-telecom customers will be connected if the property adds telecom services or when advanced metering applications are launched.]

The Past: Projects and Paperwork

By 1997, HMU was providing Internet service via a Hybrid Fiber-Coax (HFC) network. They financed the network with a grant from the Commerce Department and utility revenue bonds. Committed to affordable, high-quality service, the utility began to install fiber in certain areas in the north [Update: the northwest portion] of town in 2012.

The Sixth Circuit Court of Appeals issued their order on August 10th supporting the states of Tennessee and North Carolina in their challenge from an FCC decision from February 2015. Both states objected to the FCC’s decision to preempt state laws preventing municipalities from providing fast, affordable, reliable connectivity via municipal Internet networks. The Appellate Court Judges reviewed the legal arguments, the precedent, and the interplay between federal authority and state sovereignty. 

The impact of their ruling will affect more than a few pages in a law school text book. Access to high-quality Internet access positively impacts real people and businesses and, as Cecila Kang captures in her recent article in the New York Times, the people who depend on it fear the outcome if their state legislators take it away.

Family Farm Fear

Kang profiles Vick Family Farms, a family potato farm in Wilson, North Carolina.  The Vick family chose to invest in a processing plant when they learned that Wilson’s Greenlight would provide the necessary connectivity. Greenlight allowed them to increase sales overseas. Now, they may lose that connection:

“We’re very worried because there is no way we could run this equipment on the internet service we used to have, and we can’t imagine the loss we’ll have to the business,” said Charlotte Vick, head of sales for the farm.

As Kang notes in her article, the FCC has no plans to appeal the decision, so battles will resume at the state level. Advocates will need to be twice as vigilant because incumbents - the only ones that come out ahead from this decision - may try to push state legislators for even tougher anti-competitive state barriers.

Pinetops: Poster Child For Good Connectivity

The Urbana-Champaign Big Broadband non-profit (UC2B) owns a community network in the southern Illinois sister cities of Urbana and Champaign. In 2009, these cities partnered with the University of Illinois to create the non-profit UC2B to build a Fiber-to-the-Home (FTTH) network using a federal stimulus grant. In 2014, UC2B partnered with iTV3 to operate the network, but CountryWide Broadband bought iTV3 in early 2016. Now UC2B is looking for a new partner.

On August 22, 2016, UC2B issued a Request for Proposal (RFP) to find a partner to operate and expand the existing UC2B fiber network. Submit letters of Intent to Respond to the RFP by Monday, August 29, 2016 to RFP@UC2B.net. The goal is Gigabit-connectivity in Champaign-Urbana, Illinois.

Pass/Fail Requirements and Some Additional Key Criteria

Interested partners must honor the Three Core Principles of UC2B’s network:
1. An all fiber network; and
2. An open access network; and
3. Ubiquitous access, with no cherry picking.

Respondents will specifically be judged by 10 Pass/Fail Requirements and 9 Additional Key Criteria. These include:

An Initial $8.5 million Investment (p. 7 - 8 of the RFP)

$8.2 million will go to CountryWide Broadband (to buy out their interest in UC2B infrastructure, electronics, and customers), and the remaining $300,000 will be split equally among the City of Champaign, the City of Urbana, and UC2B to cover administrative costs. 

A Community Storefront (p. 10)

The new partner must open a storefront for at least forty hours a week. The store must also have friendly and knowledgeable customer service representatives. 

RFP Schedule 

(Note: the schedule is subject to change)

Hudson is bringing better connectivity to local businesses with Velocity Broadband, its gigabit fiber network, and is now exploring the potential of Fiber-to-the-Home (FTTH) for the rest of the community. The city recently issued a Request for Proposals (RFP) for a feasibility study to review the possibilities for service to residents. Proposals are due August 26.

From the RFP Summary:

This project will result in the production of a Feasibility Study containing a residential needs assessment, deployment strategy options and construction cost estimates. The desired outcome of this planning effort is to provide a tool for the city to establish if Hudson residents want this service and determine a successful deployment strategy and the associated cost to implement fiber to the homes (FTTH) within the City of Hudson. 

The city wants the study completed by the end of 2016.

We’ve covered Hudson’s venture into accelerating connectivity for businesses since 2014. The community of 23,000 started by incrementally building out a fiber-optic institutional network (I-Net) over a period of about ten years, which it later expanded to offer gigabit service to businesses. Chris interviewed Hudson City Manager Jane Howington last December about the city’s Velocity service. Check out episode #181 of the Community Broadband Bits podcast for that conversation. Since the launch, local businesses have been excited to obtain fast, affordable, reliable connectivity.

The full RFP is available on the city's website.

On July 4th, Sandy, Oregon’s municipal fiber-optic network, SandyNet, permanently increased the speed of its entry-level Internet package from 100 Megabits per second (Mbps) to 300 Mbps at no additional cost to subscribers.

The city announced the speed boost for its $39.95 per month tier in a recent press release, calling it “one of the best deals in the nation.” SandyNet customers witness blazing fast download speeds at affordable prices and benefit from symmetrical upload speeds, allowing them to seamlessly interact with the cloud and work from home. 

Sandy is still home the “$60 Gig” (see price chart), one of the premier gigabit Internet offers in the nation. Without an electric utility, SandyNet’s unique model can be applied to “Anytown, USA.”

Read our report on Sandy, SandyNet Goes Gig: A Model for Anytown, USA, for details on the community's Fiber-to-the Home (FTTH) and fixed wireless networks and listen to Chris interview Sandy officials in Community Broadband Bits Podcast Episode 167.

Check out our video on Sandy:

The U.S. Department of Housing and Urban Development (HUD) recently asked for comments about a proposed rule to expand low-income access to high-speed Internet. The regulations would require building owners to install high-speed Internet infrastructure in HUD-funded multi-family rental housing during new construction or substantial rehabilitation, improving Internet access by promoting competition. Because the Internet infrastructure is not owned by one company, many Internet Service Providers (ISPs) can compete to provide residents with better options.

A variety of individuals and groups provided feedback for HUD, including local governments, nonprofit advocacy groups, ISPs, and professional associations. The majority of comments support HUD’s proposed rule, with many encouraging HUD to go further in their efforts to close the digital divide.

We submitted comments with Next Century Cities to articulate the importance of having reliable Internet access in the home:

Although Internet access may be available at schools, libraries, and other locations away from home, families with children - in particular single-parent households - face barriers to accessing those facilities. There is no substitute for having high quality home Internet access, where all members of a household can use it with privacy, security, and convenience. This high quality Internet access is what our organizations work with mayors and local leaders to achieve for residents and businesses everyday, which is why we feel so strongly about the proposed steps to close the digital divide and allow more residents to connect online.  

HUD correctly notes that installing telecommunications equipment during major rehabilitations or as units are being built creates an opportunity to ensure high quality access without significantly adding cost to the project. The ongoing benefits from high quality Internet access certainly dwarf the one-time low cost of installing appropriate technology. --Next Century Cities and the Institute for Local Self-Reliance

Promote Competition

Electric cooperatives are bringing high-speed Internet service throughout northeast Oklahoma. In 2014, Bolt Fiber, a subsidiary of Northeast Oklahoma Electric Cooperative, started building a Fiber-to-the-Home (FTTH) network throughout their service area. Now, slightly to the south, Lake Region Electric Cooperative is planning to expand their FTTH network.

Lake Region Electric Cooperative is about to begin another phase of construction on their FTTH network in the area around Tahlequah, Oklahoma, capital of the Cherokee Nation. The subsidiary or the electric co-op, Lake Region Technology and Communications, is managing the project.

Expanding Reliable, Rural Internet Service

In late 2014, the co-op began two pilot projects for FTTH service. After the success of those projects, the co-op decided to expand. They have divided their service area into 11 zones and are seeking sign-ups. The co-op will expand the FTTH network to the zones where the most people pre-register. The network provides high-speed Internet access, HD video, and high-quality phone service.

The electric co-op requests a $50 deposit with pre-registration, but will waive the $250 installation fee with a pre-registration. If someone signs up after construction starts, they pay a reduced installation fee. Residents and businesses who decide to sign up for services after the network is up and running in their zone will pay the full installation fee. The co-op might also charge a line extension fee depending on the distance from the existing fiber line.

Rates are still subject to change, but the co-op's website suggests Internet access will be symmetrical, offering the same speeds on the upload and download, starting at $49.95 per month for 25 Megabits per second (Mbps) for residential customers. Business Internet access will start at $99.95 per month for 50 Mbps. Both include a free Wi-Fi router.

Positive Responses